Fleet Management in the Americas 13th edition

Fleet Management in the Americas 13th edition

Fleet Management in the Americas is the thirteenth consecutive report from Berg Insight analysing the latest developments on the commercial vehicle telematics market in the Americas. The report covers in-depth both OEM and aftermarket players and includes all the latest market data. This strategic research report from Berg Insight provides you with 290 pages of unique business intelligence, including 5-year industry forecasts, expert commentary and real-life case studies on which to base your business decisions.

Fleet Management in the Americas 13th edition

Fleet management (FM) is an ambiguous term used in reference to a wide range of solutions for different vehicle-related applications. Berg Insight’s definition of a fleet management solution is a vehicle-based system that incorporates data logging, satellite positioning and data communications to a backoffice application. The history of fleet management solutions goes back several decades. On-board vehicle computers first emerged in the 1980s and were soon connected to various satellite and terrestrial wireless networks. Today, mobile networks can provide ubiquitous online connectivity in many regions at a reasonable cost and mobile computing technology delivers very high performance, as well as excellent usability. All of these components combined enable the delivery of vehicle management, transport management, driver management and mobile workforce management applications linking vehicles and enterprise IT systems. The same technology platform can furthermore also be used for regulatory compliance and reporting.

Commercial vehicle fleets play an essential role for the economy in both North and Latin America. In North America, there are approximately 29.9 million vehicles in commercial use. The number of commercial vehicles in operation in Latin America is estimated to 40.7 million. The fleet management solution market in the Americas has been in a growth period for many years. The global recession associated with the COVID-19 pandemic slowed down activities in 2020–2021 to some extent, but the current outlook is positive in spite of the challenging economic climate. The advanced North American market is among other things driven by regulatory developments such as the ELD mandates in the US and Canada. The Latin American market has often required an educational process to extend the perception of fleet telematics beyond security-related aspects. Latin American fleets have however also started to embrace optimisation functionality to an increasing extent.

Berg Insight expects the fleet management market to show healthy growth in 2024–2027. In North America, the number of systems in active use is forecasted to grow at a compound annual growth rate (CAGR) of 12.6 percent from 15.3 million units in 2022 to 27.6 million units by 2027. The penetration rate in the total population of non-privately owned vehicles in commercial use is estimated to increase from 48.1 percent in 2022 to 75.0 percent in 2027. In Latin America, the number of systems in use is projected to increase from 5.3 million units in 2022, growing at a CAGR of 12.6 percent to reach 9.6 million units in 2027. The penetration rate in the region is estimated to increase from 15.8 percent in 2022 to 27.2 percent in 2027.

Geotab, Verizon Connect and Samsara are the leading fleet telematics providers in the Americasin terms of the number of active fleet management subscribers in the region. Canada-basedGeotab is clearly in the lead with an installed base in the 3 million range, ahead of US-basedVerizon Connect in second place followed by the relative newcomer Samsara. The remainingtop-5 players in the region are Solera Fleet Solutions and Trimble Transportation, both active inthe industry for decades. Additional solution providers with more than half a million units includeLytx, CalAmp, Gurtam, Motive (formerly KeepTruckin) and Zonar Systems (Continental). Inaddition to Continental, the world leading tire manufacturers Michelin and Bridgestone have alsoestablished strong positions in the fleet management space through acquisitions. The remainingtop-15 players include MICHELIN Connected Fleet, Bridgestone Mobility Solutions, FleetComplete, GPS Insight (including Certified Tracking Solutions) and Powerfleet. The latter hasrecently announced an agreement with MiX Telematics to form a combined business which willbe branded as Powerfleet. There are now more than 30 players with estimated installed basesof at least 100,000 active fleet management units in the Americas, including also TeletracNavman, Ituran, WideTech, Encontrack, Pósitron (Stoneridge), Navixy (SquareGPS), Linxup,GPS Trackit, Autotrac, 3Dtracking, RedGPS, OnixSat, Omnilink, J. J. Keller, Scania, KOREPosition Logic, MiX Telematics, IntelliShift, Sitrack and Satrack.

Most vehicle manufacturers now offer factory-installed fleet telematics solutions either independently or through partnerships. Examples of OEMs which have introduced systems in the Americas include Volvo Group, PACCAR, Daimler Truck, Navistar, Scania, Volkswagen, Iveco, Hino, Ford, GM, Mercedes-Benz Vans and Stellantis. The OEM telematics initiatives in the region have intensified over the years especially in North America, but the activities are also increasing in Latin America. In the last few years, several of the commercial vehicle OEMs have extended their partnership strategies and started working with additional aftermarket telematics partners, enabling fleet customers to choose the systems which best match their specific needs. Some OEMs such as Ford and GM have also in recent years introduced new proprietary fleet telematics solutions offered as an alternative alongside a growing selection of partner-powered offerings. Notable fleet telematics providers active in the OEM space in various ways include Platform Science, Geotab, Verizon Connect, Samsara, Trimble, Zonar Systems, Fleet Complete, MICHELIN Connected Fleet (Sascar) and Omnilink. The OEM channel is anticipated to increase in importance in both North America and Latin America in the coming years.